Aquila Resources Inc.
TSX : AQA
OTCQX : AQARF
FRANKFURT : JM4A

Aquila Resources Inc.

July 09, 2012 06:00 ET

Aquila Drills 65 Meters of 2.80 g/t Gold Including 8.88 Meters of 13.14 g/t Gold at Reef Gold Project

TORONTO, ONTARIO--(Marketwire - July 9, 2012) - Aquila Resources Inc. (TSX:AQA)(OTCQX:AQARF)(FRANKFURT:JM4A) ("Aquila" or the "Company") is pleased to release remaining results from the 2012 drill program at its 100% owned Reef Gold project ("Reef") in Marathon County, Wisconsin. The Company reports that the program was successful in outlining the initial framework for an open pit resource calculation in the future as well as identifying additional extensions of gold mineralization at Reef.

Drilling intercepted significant gold mineralization in holes R12-38 and R12-40 including:

  • 65.23 meters of 2.80 g/t gold in R12-38
    • Including 8.88 meters of 13.14 g/t gold and 0.44% copper
  • 94.56 meters of 1.53 g/t gold in R12-40
    • Including 3.90 meters of 14.89 g/t gold
    • Including 6.78 meters of 6.15 g/t gold

Gold mineralization was encountered in stacked, sheet-like quartz veins in R12-38 and R12-40. The nature and thickness of these intercepts highlight the excellent exploration potential along strike to the northeast and also establishes continuity with similar trending historic zones to the north.

R12-38 was drilled in the vicinity of a high grade historic Noranda drill hole and confirms the presence of the mineralized zone. Mineralization remains open down dip and along strike to the northeast and follow up on this intercept will be high priority for future drilling. R12-40 was drilled on the southwestern most fence of the Reef core area and represents a 140 meter down dip step out of historic hole RF87-15. Mineralization is open down dip and along strike from this intercept.

Selected results from the winter 2012 drill program are listed below:

DDH From (m) To (m) Interval (m)* Gold g/t Silver g/t Copper %
R12-38 80.50 145.73 65.23 2.80 1.25 0.17
Including 100.19 105.23 5.04 5.99 1.83 0.20
Including 115.12 124.00 8.88 13.14 3.741 0.44
DDH From (m) To (m) Interval (m)* Gold g/t Silver g/t Copper %
R12-39 80.50 111.25 30.75 1.00 0.44 0.05
Including 88.34 92.00 3.66 6.81 0.12 1.30
DDH From (m) To (m) Interval (m)* Gold g/t Silver g/t Copper %
R12-40 8.54 103.50 94.96 1.53 0.92 0.05
Including 59.60 63.50 3.90 14.89 2.52 0.07
Including 96.72 103.50 6.78 6.15 1.76 0.10
DDH From (m) To (m) Interval (m)* Gold g/t Silver g/t Copper %
R12-41 44.45 65.07 20.62 1.00 0.71 0.14
108.00 117.76 9.76 1.17 2.66 0.32
* Reported intervals are drill thickness and do not necessarily represent true thickness

Since acquiring Reef in March of 2011 Aquila has completed 42 diamond drill holes totaling approximately 4,400 meters (see press release dated March 7, 2011). The 2012 drill program confirmed the continued presence of extensive gold and copper mineralization within unexplored portions of loosely defined zones identified by previous explorers.

The Company is preparing a third round of exploration drilling for the upcoming winter season. This is expected to include additional infill drilling within the previously defined Noranda zones and continued step out drilling to the southwest and east of the profile drilling completed during summer of 2011 (see press release dated January 26, 2012).

To view the map associated with this press release, please visit the following link: http://www.aquilaresources.com/images/projects/Aquila_Gold/Reef/reef_drill_program.png.

About The Reef Gold Project

Located in Marathon County, Wisconsin, the Reef Gold Project is 100% owned by Aquila Resources. The project consists of approximately 600 acres of mineral and surface interests covering an area of gold mineralization discovered in the 1970's by Noranda Exploration. Noranda identified eight zones of high grade gold mineralization in a widely spaced, 50-hole drilling campaign, and quoted a non 43-101 compliant resource of 454,600 tonnes of 10.6 grams per ton (g/t) gold, open at depth and along strike. The Company has acquired and verified Reef drill core for geological characteristics and gold content. Aquila believes the mineral resource estimate is relevant and is based on a reliable historical report. For more information on the Reef Project, please refer to the Reef Project section on our website.

About Aquila Resources Inc.

Aquila Resources Inc. (TSX:AQA)(OTCQX:AQARF)(FRANKFURT:JM4A) is a mineral exploration Company focused on the discovery and development of high grade base and precious metal projects in highly prospective regions of North America. The Company is led by an experienced management team that has identified significant ore deposits over the last 30 years. For more information please visit www.AquilaResources.com.

Quality Assurance and Quality Control

The core was logged and intersections were marked for sampling and assaying by geologists and geo-technicians employed by Aquila Resources. Each bagged core sample was transported to Minerals Processing Corporation's (a related party to the Company) sample prep lab in Carney, Michigan where it was dried, crushed and pulverized and a 250-gram sample was prepared and split, with one split for assaying at Inspectorate Labs in Sparks, Nevada. Strict sampling and QA/QC protocol are followed, including the insertion of standards and blanks in the sample stream on a regular basis. Sample intervals are typically 1.5 meters. Analytical method for gold is fire assay with atomic adsorption finish and gravimetric finish for samples greater than 3.0 g/t gold. All other elements are analyzed by ICP with silver over limits (>200 g/t) analyzed by fire assay/gravimetric finish and base metal over limits analyzed by AAS.

Assaying integrity is monitored internally with a quality control program, which includes the use of assay sample standards, blanks, duplicates and repeats, and externally through national and international programs. This news release provides core lengths and estimates of vertical thickness only. True widths are not provided. Where metal assays are provided for intersections they are either a single assay of a sample of the entire intersection length or a composite of assays calculated from interval weighted assays over the intersection length.

Thomas O. Quigley is the Qualified Person for Aquila Resources as described in National Instrument 43-101 and is responsible for the contents of this release.

This press release contains certain forward-looking statements. In certain cases, forward-looking statements can be identified by the use of words such as "plans", "expects" or "does not anticipate", or "believes", or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward -looking statements. Such factors include, among others, risks related to international operations; risks related to joint venture operations; actual results of current exploration activities; changes in project parameters as plans continue to be refined, future prices of resources; possible variations in reserves, grade or recovery rates, accidents, labor disputes and other risks of the mining industry; and delays in obtaining governmental approvals or financing or in the completion of development or construction activities. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward -looking statements, there may be other factors that cause actions, events or results to differ from those anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward - looking statements.

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The Toronto Stock Exchange neither approves nor disapproves the information contained in this News Release.

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